“War, What War? Don’’t Mention the (Currency) War”!

• “War, What War? Don’’t Mention the (Currency) War”! 
  by Gregory McKenna, http://www.news.com.au/ 
  YES, international finance collectives, G7 and G20 have been pulling  their best Basil Fawlty impressions of late.
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  With straight faces they are claiming that the policies they are pursuing,  which have weakened the US dollar, severely weakened the Yen and which will soon  weaken the Euro and Pound, are not currency manipulation.
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  “No, not us! We wouldn’t do that!”
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  Just look at their recent  communique from the G20 and what it said about currencies:
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  “We reaffirm  our commitment to cooperate for achieving a lasting reduction in global  imbalances, and pursue structural reforms affecting domestic savings and  improving productivity. We reiterate our commitments to move more rapidly toward  more market-determined exchange rate systems and exchange rate flexibility to  reflect underlying fundamentals, and avoid persistent exchange rate  misalignments and in this regard, work more closely with one another so we can  grow together.”“Reflect underlying fundamentals”, translates to “we’re weak but you BRICS and Aussies are strong so your currencies and  Economies have to suffer”. It was G20, or more correctly G7 speak for “Don’t  mention the War!”
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  Pulling the trigger Certainly the folks at the Federal Reserve (Fed), Bank of England (BoE) or  Bank of Japan (BoJ) would claim that they have not fired any shots in anger, but  prisoners are being taken all over the world. The Fed’s unconventional policy  has, until very recently, had the twin successes for the Fed of driving stocks  up and the US dollar down, as the US economy has clearly improved relative to  most of the rest of the world. Exports as a proportion of the US GDP are up 3-4%  since the beginning of the GFC.
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  read more!

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